Tips To Buying Your Second Investment Property

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Tips To Buying Your Second Investment Property

Mortgage Offset Account

A mortgage offset account can save interest on your loan. Your mortgage is linked to a savings account into which your salary and other cash can be deposited and from which you withdraw to pay bills, credit cards, etc. For the period of time money sits in this account, it is ‘offset’ against your loan and so reduces your interest bill.

Make an Annual Lump Sum Payment

Utilise a windfall, such as an inheritance or work bonus, as well as tax refunds, and apply it directly to your principal. Check your mortgage document to find out how often you can repay and in what amount.

Save a Little Extra Every Month

In general, $150 a week can usually support an additional property providing you have the deposit. Set up a separate savings account and find a target amount for a deposit. This history of savings will help you to finance another property.

If Interest Rates Drop

If the interest rate for your variable rate loan drops, save the difference for a deposit towards another property rather than paying off the investment loan.

Stay Informed

Once you have a mortgage, besides making payments, its easy to forget about it altogether. Staying informed of new products and interest rate movements could potentially save you money. It is recommended that over the lifespan of your loan you explore other products and facilities that my better suit your changing needs.

We recommend you review your mortgage requirements and equity with us on a regular basis.

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